European Union (Withdrawal Agreement) Bill

Lord Bethell Excerpts

Committee: 3rd sitting (Hansard) & Committee stage & Committee: 3rd sitting (Hansard): House of Lords
Thursday 16th January 2020 Lords Chamber

[Lord Bethell (Con)]

My Lords, I am enormously grateful for the opportunity to respond to the noble Baronesses, Lady Hamwee and Lady Miller, and to all noble Lords who have contributed to this debate on Amendments 37 and 44.

Amendment 37 refers to UK nationals in the EEA and Switzerland and protections to their state pensions and healthcare. I hope that the debate will provide a valuable opportunity to give some reassurances on some of the key and important points made by the noble Baronesses, Lady Hamwee and Lady Miller, and the noble Lords, Lord Shipley, Lord Steel, Lord Kerr, Lord Whitty, and other noble Lords.

The noble Baroness, Lady Hamwee, is quite right to state that confidence in the system is absolutely essential. This has been a difficult period for those who have felt, at times, that their benefits and arrangements might have been in jeopardy. The noble Lord, Lord McNicol, spoke movingly about the concerns of UK nationals in the EU, and EU citizens in the UK, who have cross-border lives and who are seeking reassurance that those healthcare and state pension rights will be protected. I reassure the House that that protection has been a high priority for the Government.

We have delivered certainty for the 1 million UK nationals that the noble Baroness, Lady Hamwee, referred to, and to the 3 million EU citizens in the UK, via the withdrawal agreement which we have reached with the EU. We have also reached a separate agreement on citizens’ rights which, in great detail, protects the rights of EEA, EFTA and Swiss nationals in the UK, and UK nationals living in those states.

Certainly, it is absolutely critical that people should feel at ease about their futures—the noble Lord, Lord Steel, touched on that point movingly. I will offer the crumb of comfort that he asked for. These agreements give citizens the certainty that they need about their rights going forward and ensure that they can continue to live their lives as they do now. That includes, importantly, the right to live, work, study and access healthcare; to receive an uprated UK state pension in the EEA and Switzerland, in line with the triple lock; and to access valued benefits.

I will tackle the question of the three-year period. I reassure the House that the uprated pension in these areas is not just for three years; that was a proposal floated under a possible no-deal arrangement. This is an uprated benefit for life. These are the key components of what I believe the noble Baroness is trying to achieve in her amendment. I make it clear to the House that these are already protected.

The Government have also gone further than the withdrawal agreement and the proposed new clause require, protecting the rights of UK nationals in the EU where it is unilaterally possible to do so. In April last year, the Government published a policy paper, Citizens’ Rights—UK Nationals in the EU, which supplemented the rights contained in the withdrawal agreement for UK nationals resident in the EU at the implementation period. I will give a few examples. In respect of family reunification when UK nationals return to the UK, there is an additional seven-year period from the end of the implementation period for UK nationals living in the EU to access higher and further education in the UK under home fee status, and with support from student finance. This offer on education has also been applied by the devolved Administrations.

I will address the proposed new clause in Amendment 37 and the specific arrangements referred to by the noble Baronesses, Lady Hamwee and Lady Miller. I reassure the House that the citizens’ rights provisions in the agreement already ensure that those who have made their lives in or plan to retire to the EU by the end of the implementation period will receive an uprated UK state pension in the EU and any associated reciprocal cover while they have the right of residence in that member state. The provisions of the agreement will protect approximately 500,000 state pensioners already in receipt of a UK state pension and approximately 190,000 UK state pensioners and their dependants for reciprocal healthcare cover across the EU, EEA, EFTA states and Switzerland.

The current arrangements go further than the amendment itself. The proposed new clause in Amendment 37 falls short of the protections offered by the agreements. That is because they ensure the protection of not only UK nationals currently in receipt of a UK state pension in the EU, but UK nationals resident in the EU who are not yet of state pension age but who might be considering retiring in the country in which they live: for example, someone who has retired early to the EU once they reach UK state pension age. I reassure those who, like the noble Lord, Lord Steel, are concerned about our EU friends. The agreements will also protect reciprocal healthcare for all those in scope of the agreements, regardless of whether they are UK nationals.

The noble Baroness, Lady Hamwee, asked about the aggregation of pensions and benefits. I reassure the House that all contributions today, made from whatever country in the EU or EFTA, and Switzerland, will be protected by the Bill. The noble Lord, Lord Kerr, referred to ongoing negotiations about those who look to make onward movements beyond the implementation period. I reassure the House that those negotiations are being carried out with energy and enthusiasm. I also reassure him that his EHIC card will be valid until the end of the year—as it will be for the Bethell family, including my four children, on our forthcoming holidays.

[Lord McNicol of West Kilbride]

The Minister said that UK pensions will be uprated “while they have the right to reside in that state”—I think I quote him correctly. But what if they move to another EU state?

[Lord Bethell]

Those parts of the pension that are already in the bag, as it were, will continue to be uprated, depending on where they move to. If they move to another area where there is a treaty arrangement, they will continue to benefit from the uprating arrangements relevant to the country to which they move. However, as my noble friend Lady Altmann referred to—a point I shall move on to—if they move to an area which does not have a treaty arrangement, their future contributions to the pot will be relevant to that country’s arrangements.

[Lord Shipley]

Can the Minister clarify something that I think he said? He referred to UK citizens who are not yet of retirement age but become entitled to a UK state pension and then move to one of the 27 countries of the EU. Will their pensions be uprated?

[Lord Bethell]

I am not sure that I completely understand the question. If they have qualified for the UK state pension while still in the UK, of course they will take their pension with them. If they are currently living in the EU but contemplating retiring in that country, the arrangement that we have had means that their benefits will continue while they are in that country. I hope that answers the question.

[Lord Shipley]

My question was whether, if someone who is currently working and then retires, receives the UK state pension outside the European Union after 1 February but then moves to an EU country after that date, their pension will be uprated in that country. Is that what the Minister said?

[Lord Bethell]

That is a question of sufficient complexity that I am reluctant to commit to an answer at the Dispatch Box, but I will be glad to come back to the noble Lord with a detailed response.

The noble Baroness, Lady Miller, made a good suggestion when referring to the concerns of EU citizens living in the UK about their arrangements. I reassure those citizens that the arrangements in place will preserve their current situation, so they should feel confident and reassured. Her suggestion of a country-by-country guide is a good one, which I welcome, and I will pass it on to the department as a recommendation.

My noble friend Lady McIntosh talked about the fair recognition of pension payments in the round. I cannot comment on the precise arrangements for her pensions, but I reassure her that everything that is contributed to pension pots in any EU country before the end of the implementation period will be recognised as contributions to the pension.

Lastly, my noble friend Lady Altmann talked movingly about the uprating of pensions for those who live in countries with no suitable treaty. That is way beyond the scope of this agreement. I have sympathy for those people who live in countries where there is no pensions treaty, but as she quite rightly explained, they did make that move knowing what the arrangement was. Bringing in uprating for such people would add an enormous cost to the Treasury of around £600 million a year, but it is something that remains on the Government’s radar screen.

The new clause proposed by Amendment 37 is well intentioned and is entirely supported in spirit by the Government, and that is why we have put in place the arrangements set out in the Bill. However, it is unnecessary as the agreements that the Bill will implement safeguard both healthcare and state pension rights for UK nationals living in the EU, and therefore I will ask the noble Baroness, Lady Hamwee, to withdraw it.

Before I do so, I will address the points made by the noble Lord, Lord Teverson, on his amendment. I thank him, the noble Lord, Lord Whitty, and others who also spoke to it. The proposed new clause is a well-intentioned and creative move. I acknowledge that there are some people in the EU, as mentioned by the noble Lord, Lord Teverson, who would like such a measure to be enacted. But I want to be really clear with the Committee: EU treaty provisions on this matter are very straightforward. Only the nationals of EU member states are able to hold EU citizenship. When the UK ceases to be a member of the EU on 31 January, UK nationals will no longer be able to hold EU citizenship. For those who have dual nationality with another EU member state—I would guess that the noble Lord, Lord Teverson, is in this group—it will be different. However, those with only British citizenship will not be EU citizens.

We have worked hard to ensure that the effect on people’s lives will be minimised. The withdrawal agreement we have reached is a fair and reciprocal agreement with the EU on citizens’ rights. It provides certainty and a means for all UK citizens living in the EU and EU citizens resident here in the UK at the end of the implementation period to be able to continue to live their lives broadly as they do now. These rights as provided by the withdrawal agreement will take the status of international law, having a direct effect in EU member states under EU law and in the UK under Clause 5 of the Bill. These provisions are meaningful and give people who are concerned about this the security that they need.